JPM foresees price hikes from luxury names, downgrades 'tricky' Pandora

J.P.Morgan expects price hikes to be the likeliest way for luxury companies to offset tariff pressures, and downgrades Pandora due to its high U.S. exposure and possibly limited pricing power

It estimates brands would need an average price increase of 8-12% in the U.S. to mitigate the impact at EBIT level

It says jeweller Pandora PNDORA.CO presents "one of the trickiest" set-ups, with one of the highest U.S. exposures at more than 30% of its sales, cutting the stock to "neutral" from "overweight"

The broker notes that all Pandora's imports come from Thailand, on which the U.S. has imposed 36% tariffs

Pandora might also be one of the companies with the lowest pricing power to offset the duties, JPM adds, as it is already looking for measures to offset recent silver inflation

Pandora's shares dip around 3% in early trade, among top fallers on the pan-European STOXX 600 index .STOXX